Inflation got me thinking about my gold stack, anyone else?
- •Watching these inflation numbers come out last week got me feeling a certain way.
- •Been retired from the auto industry here in Detroit for a few years now, and I’ve seen enough ups and downs to know when to pay attention.
- •But this run-up feels different.
Watching these inflation numbers come out last week got me feeling a certain way. Been retired from the auto industry here in Detroit for a few years now, and I’ve seen enough ups and downs to know when to pay attention. My gold holdings, which are a good chunk of my portfolio, probably sitting somewhere in the $700k range right now, have always been my main hedge against this kind of thing. I started piling into precious metals over 20 years ago, mostly physical gold, partially because of a gut feeling and partially because my old man always said a dollar ain't worth a damn in a crisis. He wasn't wrong.
But this run-up feels different. It's not just the usual cycle stuff. Everything from groceries to gas feels like it's getting eaten alive. My pension is stable, thankfully, but even still, I'm watching my purchasing power just shrink. I remember thinking 'what if' back in ‘08, but even then, it didn't feel as pervasive across the economy. Gold did its job then, climbed nicely, and gave me some peace of mind. Now, it feels like we're settling into a new normal of higher prices, and that makes me wonder if gold's typical "inflation hedge" status is going to be enough.
My question for you all, especially those of you with significant gold exposure – are you feeling the urge to add more? I’ve been debating if I should reallocate some of my other investments into physical gold or maybe even some of the more liquid gold ETFs. I know the mainstream financial advice is usually diversification, but sometimes I feel like the best diversification is just more of what works when everything else is shaking. Anyone else in a similar boat, feeling the call to fortify their gold position against this seemingly relentless inflation?